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Change your VAT Scheme - Cash Accounting to Standard

Created on  | Last modified on 

Summary

How to change from Cash Accounting to Standard VAT scheme in Accounting Start.

Resolution

Important steps

You must complete the following tasks before you change your VAT scheme.

  • Enter all transactions under the VAT cash accounting scheme, for example, if your old VAT scheme ended on 30th September, enter all transactions with VAT dated up to 30th September
  • Do not enter any transactions that need to be on the new VAT scheme, for example from 1st October onwards
  • Submit your final VAT return under the VAT cash accounting scheme. Find out how to create and submit a VAT return
  • Delete all transactions that are dated after your final cash accounting VAT return. This is to make sure no transactions remain from your old VAT scheme. You cannot change VAT schemes when you have transactions from your old VAT scheme. This is because we assume these transactions will need to be submitted on a VAT return first

     NOTE: If you cannot delete a transaction, contact support for further help. Get in touch (opens in a new window). 

Change to a Standard scheme

  1. Select More and then select Business Settings.
  2. Select Accounting dates and VAT.
  3. Use the VAT Scheme drop-down to select Standard.
  4. Select Save.
  5. If you deleted any transactions before changing your VAT Scheme, you can re-enter them now.

Any unpaid invoice or credit note amounts will create Scheme Transfer transactions in your account. You can view these transactions by reviewing the Audit Trail report. This means that any VAT amounts for the unpaid invoices and credit notes will move from your holding accounts. The VAT will become payable or reclaimable at that time. Your next VAT return will include these transactions as of the date of the scheme change.

See the example below

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If you have been using the incorrect VAT Scheme

This usually happens when you first sign up for Accounting Start and set up the wrong VAT scheme or choose Not Registered by mistake.

To correct this and get onto the right VAT scheme, read about what to do if you have been processing on an incorrect VAT scheme.